The state of rebates: Has reliability improved?

Rebates: Love 'em or hate 'em, they're still a ticket to great deals.

(Credit: Zazzle)

This morning I was going to post a Fantom 500GB eSATA/USB external hard drive for $44.99 shipped--but then I saw the $20 mail-in rebate that's required to get that price.

Rebates. I know from reading nearly two years' worth of comments that many of you hold them in the same regard as telemarketing and tax audits.

Indeed, it's the rare rebate-oriented post that doesn't draw at least one "rebates are a scam!" response.

But are they? Many years back, rebates started earning a deservedly bad reputation owing to woefully complicated forms, delayed or unfulfilled claims, and at least a few disreputable fulfillment companies.

That was then. Today, I think it's safe to say that rebates are easier to deal with (some let you complete the forms online, track status on a Web site, etc.), and it's been ages since I've heard of any major controversies.

This begs the question: Here in late 2009, how do you feel about rebates? Have things improved? Do you trust rebate deals more than you used to? Is it worth jumping through a few hoops to get a check for $20? $50? More?

Or, do you still think they're scams, a pain in the neck, not worth the hassle?

Whatever your opinion, I'd love to hear some real-world background. If you've gotten a raw rebate deal recently, tell me about it! Or if you've had a great rebate experience, let's hear about that, too. Keep it current if you can; we're talking about the status of rebate deals in 2009, not 2005.

As I've mentioned before, I've never had a problem with a rebate. And while my preference is for instant-gratification coupon codes, I don't mind the minor inconvenience of filling in a form, cutting out a UPC, and mailing an envelope if there's at least $10 hanging in the balance.

You?

[aggie1993]

In several years worth of filing rebates, I know of only one time that I got shafted. However, I'm meticulous about following the directions, keeping copies, and logging when I mailed them and should expect the check. Over the years, I've had to make phone calls to find the status & get it moving, but with the one aforementioned example, have always been paid. The one that I got shafted on, I found some guilty pleasure in tying up their customer service reps for long periods of time arguing - so I figure they lost money in the long run anyway.

The legislation that passed that rebates must include a phone number has greatly improved the industry in my opinion. But I still think anyone who isn't as an@l-rententive as me about filing and record-keeping will have much less success.

I'm somwehat annoyed with the trend towards rebates offered as check/credit cards. I find the rules about using the cards annoying, and its a pain when you have a few cents left to figure out a way to get that money. I'm sure that's why they do it - all the people who throw it away with $0.10 or $0.25 probably make it worthwhile for them to offer cards instead of checks. Usually, I deposit all rebate checks into my kids' savings accounts - which is also partly why the rebates offered as gift cards annoy me so much.

[stanjfrank]

Twice I have not received the rebate, once for a printer, second time for a digital camera. I will not buy a product that requires a mail-in rebate.
Stan

[disco2]

I agree with the comment about credit cards. Checks or better yet,right at the store.

[krubby]

I have NO issues with rebates. Over the last 3-4 years I have used a number of rebates and I have not had an issue yet. The 'complicated' ones still only take 5 minutes to do the paper work, and some are even easier than that. If you buy an item from a store that has a rebate some of them even have a system that recognizes this at checkout and prints a second receipt with the fields to complete on the receipt - they can't make it much more easier than that. The some even send you emails, or you can go online to track status. I will take 3-5 minutes of effort for $20 - $50 or whatever any day. I also have not found they ask you to go through tremendous hoops and loopholes.

I will say the ONE thing that I don't like about rebates is when you are giving the item as a gift though. Say I wanted to give this hard drive as a gift (which btw I JUST bought my dad one for his birthday so not that big a strech). You have to give the gift, then kind of come back to the person and 'ask' if you could take the box or upc code, just kind of a strange conversation unless it is with close family.

[mathcreative]

I didn't think bout that

[ducttape36]

i hate rebates. I've been screwed over by them before.

there is this catch 22 of having to mail in your rebate within a certain amount of time, and if you get a product that is defective, once you mail in the rebate with the required barcode, you cant return the product should it die. at least not at some places. i realize that most products arrive dead or alive, but there has been cases where the product wont prove defective until about a week or two after using it. and by that time your rebate is in the mail already.

so i hate rebates. i used to not care, but ive been screwed by them before. not worth it.

[BRENDAL]

This seems to be our experience with them also. Sometimes, the info (paperwork) re specs for obtaining the rebate does not come to you until the deal has been completed. That one is a real bummer. Having the time one can expect to receive the rebate is pretty laughable also. They always take the max amt of time IF they are at all timely. Meanwhile, they do have all our monies to use for their own purposes.
Nominal amts are pretty ok. When i had $185.00 being returned from purchasing a stove it was a bit more painful. Why not just discount it ???

[bigmutt]

absolutely agree with this point, about voiding your chances of returning the item if it proves defective in the next few weeks. That can really cost you.

I used to do many rebate purchases but in the past few years I've decided it just is not worth the time & frustration. I think the older you get the more you realize how valuable your time is and so I made the choice of avoiding purchases with rebates.

I have noticed that eventually the item goes on sale somewhere without the rebate at the rebated price anyway, so normally there's nothing that I need so badly that cannot wait a few weeks or months.

Rebates also coax you to buy items that you might not have ordinarily chosen: either not bought that brand or maybe not bought it at all: I have yet to hear of anyone on their deathbed saying they wished they'd purchased this and that instead of holding off. Some people are just enough of a compulsive impulse shopper that rebates give them just that little justification they needed to buy that item; that's the psychology the companiies target with their rebates and it works.

[flrhcarr]

This is what I was going to say. The last time I tried using a rebate (`07), I had to return the product because it was doa (glad someone here got Newegg to work with them they wouldn't help me). If it says rebate, I look elsewhere, unless the price with out is a good deal alone.
The last successful rebate (in electronics & computers) is so long ago I can barely remember the company & don't even remember the product.
Final thought. You know they sell your information (many times) once they have it, don't you?
Don't worry the price will be lower someplace else soon.

[cvaldes1831]

Rebates are a scam. It's a code name for "lead generation." You basically hand the company your mailing address for X dollars which they resell for Y dollars.

Do not listen to Rick.

[johnseanconn]

I've used rebates a lot and never have any problems - all you need to do is follow the directions, which I read thoroughly before making the purchase. If the conditions are unreasonable, then I don't make the purchase. Only one company, Trendnet, denied my rebate (and gave no reason), but when I contacted Newegg about it (since I made the purchase at Newegg), they refunded me the rebate amount. Newegg is one of the best online retailers around.

[fbny71]

I have had mostly good experiences with rebates. I too make sure that I've followed the instructions to the t and keep copies, etc. As of late though, it seems a couple of the rebates I had submitted, may not be going well. Whereas I never minded rebate deals, I am avoiding again.

[DetJMunch]

Does this count as the deal for the day or is another one coming. Love you Rick!

[rickbroida]

Heh, I thought slipping in that 500GB Fantom drive counted as my deal for the day! :) I'll see if anything else interesting crosses my radar.

[Mr_fleabite]

Dang Rick, you've found a topic that fires up cheapskates (3 pages and growing).

[Ex-01]

quality post Rick, glad we can talk about this!

I've had nothing but trouble with rebates involving a 3rd party Clearinghouse, either on behalf of the selling party or the product manufactorer. Those 'checkmyrebate' sites were, by design, created to make your rebate slow in coming (if at all!)

Otherwise I've been satisfied with rebates from AT&T, Newegg, Nokia, CompUSA (RIP), and Amazon. I just wish I didn't have to cut out the barcode from the box, doing so always seemed fishy to me :-\

[rickbroida]

I'm pretty sure that cut-out-the-barcode thing is precisely so that people don't buy a product, submit the rebate, and then return it. Then they'd be getting free money. Can't have that! :)

[dargreg]

I think rebates are great. I cash in whenever I can and find them to be very reliable.

[keithober]

I think rebates are reliable enough now that I basically view them as a tax on people who can't be bothered. Like all taxes, I dislike but accept them. For people who take the time to get rebates, it lowers the price below what it would be if rebates were abolished (which will be one of my first acts after my appointment as king).

[shores11]

I avoid rebates. I had some problems a few years ago and just feel the hassle, the forms, the mailing of the UPC label, the waiting ... it's just not worth it. I tend to lose interest as soon as I see "after rebate" in small print next to the price. I also agree that the trend of issuing check/credit cards is an attempt to keep people from using the full amount of the rebate.

[bcmyers33]

Apple has one of the best rebate systems I've ever encountered. I recently purchased a new computer and it came with a $100 rebate on a new printer. The "Genius" at the Apple Store showed me how to enter the rebate info online and I had already submitted my rebate online before I left the store. I received a check from Apple for the full $100 rebate within 4 days. I don't think anyone can beat that!

[gnorman333]

I've done lots of rebates over the years and have never had a problem. Some took a litte longer to get, but i've always got the dough (OCD helps in following directions precisely).

Here's something to try if you hate doing rebates...

i got $70 knocked-off a set of four new tires (discount tire) in lieu of the upcoming rebate. The manager wanted to do the tires while he had the time rather than wait for the "begin" date to come around. He also matched the best price i could find online. Sweet.

[Trevelon]

I built a computer last year, and a number of the components had rebates. Everything was needlessly complicated, it was difficult to find the proper forms, much less interpret what they wanted you to send in.

I won't buy something that has a rebate, unless I'm willing to pay the full price for it. MIRs are not a consumer friendly system.

[Mr_fleabite]

I agree that MIR's are not very consumer friendly, but so far my experience with MIR has been great. I've gotten all that I've submitted. I built a computer (all from newegg) and 90% of the parts had MIR's (plus free shipping & no tax) it took 8 weeks to get all of the MIR's but it saved me ~$100. ATM I'm waiting on a Lowes rebate that I expect to be fulfilled soon. $124 off a dishwasher delivery/ instal, it brings the delivery/ install price to free (I live ~30mi from the store) and that is after 20% off the dishwasher (labor day sale).

I'm a fan of MIR once I get the money but it does take a long time and I'll only go for MIR's from companies I'm comfortable with..... and yes I know I'm supposed to pay state sales tax on items purchased off the internet.

[dupublic]

Funny you should mention Newegg. I also built my own system about a year ago and a bunch of component had rebates, including a high end video card with $50 MIR. I meticulously filled 4 rebates form and sent them in all proper and square. I never got any money back. I submitted complaint forms to rebate processors. Nothing. I wrote to Newegg support several times. Nothing. It's weird that I didn't get any rebates back, 4 different companies. The only reason I can think of is that I moved a couple of months after mailing the forms - but I had mail forwarding set up for the new address, so why should that be a problem?

Since this frustrating experience, I ignore MIRs and I advise everyone to do the same. Maybe if everybody ignores MIRs, to attract new customers the retailers will offer more real discounts.

[chrisp339]

You nailed the reason you did not get the rebate: mail forwarding.

USPS rules state that they will not forward rebate checks. This gets into why rebates are so popular, with manufacturers: almost no one uses them. They put out a product with a rebate and they get, at most, around 10% cash rate. This is because of the rules, the no forwarding, and common forgetfulness.

[dupublic]

Thanks for letting me know about MIRs and mail forwarding. I did not know that. I read all the fine print - and that was nowhere mentioned. I bet a lot of people - e.g. college student that move every year - get tripped up by this.

[anphyo]

The USPS does not have a rule about forwarding rebates. Most rebates are mailed bulk rate which are not forwarded. If the rebate is mailed first class it will be forwarded unless the mailer specifies "return service requested". In which case the rebate is returned with your new mailing address. I have not had problems with rebates. I use a program called Rebate Tracker and have saved a total of $1855.00 so far in rebates.

[Tim_Draper]

I generally act as if the rebate wasn't there. All else being equal including (un-rebated) price, I'll buy a product with a rebate vs. one without, but if the unrebated product is cheaper before rebate than the other is after, I'll still buy the technically more expensive product.

I've only been shafted on rebates in one or two cases (not counting multiple-month turnarounds) but I understand myself well enough to know I'm the consumer the rebate is aimed at - I'm horrible about sending in rebate forms, so they can get the sale from the rebate without the full cost of the rebate.

OTOH, if it's an online rebate form, I'm golden.

[curph]

What's the purpose of a rebate? They allow sellers to advertise a lower price. Why not just sell at the lower price? Sellers take advantage of their customers busy lives to increase their profits.

[krubby]

Because with the lower price the consumer looks at that lower price in making his/her decision, but then part of the time does not follow through on the rebate. They forget about it, lose the reciept, etc.

[dc8johnson]

I've had no problems with my rebates. The one thing I don't like is the rebate debit cards. They have expiration dates and when you get down to a few dollars it's hard to use them.

[Fredmoore]

I also hate the rebate debit cards--you need to keep track of the remaining balance so you can use it up on a purchase. Also, most of them impose a monthly "fee" after about 3 months, which quickly uses up the card balance. This extra profit is probably the reason that Visa likes to issue the cards.

My best experience has been with Staples Easy Rebates--you enter all the info online and can then track the status. Sometimes you don't even need to mail in a proof of purchase. You get your check on time, after the return period has expired.

My worst experience was with a 3rd party fulfiller who proudly proclaimed on their web site "it's not about buying the product, it's about following the rules." So follow the rules meticulously!

On the other hand, I have 2 friends who have decided that even a $40 rebate "isn't worth the hassle."

[jarred128]

I haven't had to many bad experiences with rebates recently. But I did have a bad experience with wirefly.com when my family and I all bought phones with rebates. The company went under and none of the rebates were filled (costing us several hundreds of dollars). That would have been around December of 2006. My most recent encounter with rebates was last November when I built a computer (mostly from newegg) and I received all of those rebates.

My main grievance with rebates is, what's the point?
1. If a company is willing to sell their product at a given price (after rebate) why not just offer it at that price?
2. Wouldn't it cost the company more money (and potential losses due to unhappy customers who don't receive their rebate) to keep track of rebates than to just offer the product at a given price?
3. I'm sure there are companies whose sole business is to handle these rebates, and they need to make money so I'm sure they get a cut. Why not pass the savings on to the customer?
4. Wouldn't a company sell more products at a lower price with no strings attached? I can afford and am willing to have money in limbo for 2-295 weeks (insert joke) but I'm sure some people aren't able and/or willing.

That's my two cents.

[timhodgson]

They are hoping you are too lazy to do the small amount of work required to send it in. It's a way to advertise a low price and actually on have to honor that low price for 20% of the customers.

It's the way it works: don't buy from them if you don't like it.

[timhodgson]

Rebates require patience, and they are usually no problem. Only remember getting screwed on one. Staples has "easy rebates", which are by far the best in the biz.

Rebates work for companies issuing them because they are banking on your lazy butt not going though the trouble of sending it in.

[bbrooks29]

I hate rebates. I have made a promise to myself to never purchase anything with a mail in rebate. I might have missed a couple of bargains but I am happier without that jerked around feeling you get filling out the forms and the ripped off feeling waiting for the rebate. I am interested in the answers to some of the questions posted here. Are mail in rebates around simply to gather customer data and because a certain percentage af people either don't fill them out or fill them out wrong?

Rick, I check your site with my coffee in hand every morning. Thanks.

[bryanb867]

I buy 'on rebate' with caution these days - having been 'scammed' out of several that I properly filled out and returned. Has to be a company I've bought from before and a product I don't mind paying full price for. If it's an item I want and would pay full price for anyway, I consider the rebate as a bonus. But, I don't judge whether I'd buy a product based on the rebate. In other words - a rebate doesn't sway me one way or the other on the decision. That said - probably about 80% of the rebates I've sent in came back as promised, but those other 20% did leave a bad feeling about rebates.